Magnolia Petroleum Shares Rise Following News Release

PUBLISHED: Dec 07 2011 @ 09:15 | Comments (0) |

Magnolia Petroleum Plc (LSE:MAGP) released an update on its operations in North Dakota on Wednesday prompting a share price increase of 9.1% by mid-morning trading to 0.6 p.

Update on Operations

According to the company report, two wells have been successfully drilled in Dunn County, North Dakota at the Skunk Creek Wells. Magnolia owns a 0.59% interest in each of the two wells, developed with Kodiak Exploration. Both wells were successfully drilled and they expect completion of the two wells to begin by the end of the year. The primary targets for the two wells were the Bakken and Three Forks Sanish formations.

Info on Formations

The Three Forks Sanish formation sits above the Bakken formation, which comprises three separate reservoirs. The two interests cover an area of approximately 33,920 gross mineral acres, distributed across 28 sections. These reservoirs represent a significant portion of Magnolia’s operations, as 13 of their 64 producing interests are located within the two formations. According to the company, the board expects 4 new wells to be drilled on its acreage in 2012 and 10 in 2013.

Company Plans

In the statement, the company indicated that they were pleased with the results from their first drilling and that they have applied to the North Dakota Industrial Commission to drill an additional 3 wells in both the Bakken and Three Forks Sanish reservoirs within the same spacing unit.

The company indicated that the Bakken is being infill drilled to four wells per 1,280 acres and that the Three Forks Sanish is also beginning to develop at this level per spacing unit. According to the statement, this infill drilling would allow for an additional 78 wells in the Bakken and 108 wells in the Three Forks Sanish reservoir. Once permission is obtained, the company expects that their production interests will increase substantially.

Magnolia also released positive results from their operations with Hunt Oil Company. Magnolia has a 3.17% working interest in the Stocke 1-4-9H well, located in McKenzie County, North Dakota. The well reached its total depth on 2 December and is awaiting completion.

Company Spotlight

Magnolia Petroleum Plc is an AIM traded oil & gas production company with an operational focus on the United States. The company has interests in over 60 producing properties, its most notable being the Bakken shale site in North Dakota and the Woodford and Hunton formations in Oklahoma. The company was first traded on the AIM in November 2011.

References
↑ Magnolia Petroleum News Release
↑ Magnolia Operations
↑ About Magnolia

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